Netflix Inc (NASDAQ: NFLX) has been a standout performer in the stock market, with its share price surging 26% year-to-date, capturing investors’ attention and igniting speculation about its upcoming earnings report. As anticipation mounts, all eyes turn to Netflix, poised to unveil its first-quarter earnings results.
Analysts project robust figures for Netflix, with expectations of quarterly earnings per share reaching $4.49, marking an impressive 55.9% surge compared to the previous year. Additionally, revenue forecasts stand at $9.26 billion, indicating a substantial 13.4% year-over-year increase.
The streaming giant’s prior quarter’s performance offers promising insights into its potential for continued success. In its fourth quarter, Netflix exceeded Wall Street’s revenue projections, reporting $8.83 billion in revenue. Moreover, the company showcased remarkable subscriber growth, adding 13.1 million subscribers—a figure surpassing market expectations and marking its largest-ever fourth-quarter surge. With a staggering 260.8 million paid subscribers, Netflix attained a new pinnacle in its service history. As the market eagerly awaits Netflix’s latest financial revelations, the burning question remains: will Netflix once again deliver blockbuster results, or is a plot twist on the horizon?
Technical
Netflix’s stock has been riding an uptrend, buoyed by optimistic market sentiment and solid fundamentals. The technical patterns underscore the stock’s upward trajectory, positioned above the 100-day moving average within an ascending channel pattern.
However, recent weeks have seen a slowdown in upward momentum as the share price encountered overbought RSI conditions, prompting a sideways consolidation within a rectangle pattern. This consolidation reflects market indecision ahead of the eagerly anticipated earnings results.
Currently, Netflix’s share price is confined within the rectangle pattern, with support at $605.20 per share and resistance at $636.98 per share. The impending earnings report holds the key to breaking this pattern, with market reaction likely to dictate future price movements. Should the earnings report exceed expectations, triggering an upsurge in upside momentum, the $636.98 resistance level could be tested. Conversely, if selling pressures dominate post-earnings, attention may turn to the $605.20 support level. Investors are poised for a potential breakout from this consolidation phase, eagerly awaiting Netflix’s earnings report to gauge the stock’s next move.
Summary
With Netflix’s stellar performance and robust projections, investors eagerly await its earnings report. Technical analysis points to a consolidation phase, with key levels at $605.20 support and $636.98 resistance. The report’s outcome will likely determine whether Netflix continues its uptrend or faces a reversal.
Sources: Reuters, CNBC, Zacks Investment Research, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
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